STAKEHOLDER RELATIONSHIP MANAGEMENT: A SUCCESS STORY TIOGA, ND PIPELINE SPILL CLEANUP TIOGA Pipeline Spill • Pipeline release of 20,600 bbls of Bakken crude oil discovered by landowner (September 2013) • Source of release: probable lightning strike that damaged the near surface pipeline • Release covers about 14 acres of Jensen Wheat Field • This is (one of) the largest oil spills to land in continental U.S. history Key Takeaways Upfront – Stakeholder Relationships • Limit assumptions as it’s best to keep an open mind • Fill your team with the best experts and rely on them; get creative • Be the interpreter – highly technical concepts need non-technical explanations and presentations • Visual presentation of key concepts is essential to understanding • Provide consistent project narrative and build on it • Above all else, build AND maintain trust of Stakeholders - Be honest, gain their input, manage expectations - Understand their unique values and concerns Project History • September 29, 2013 - Steve Jensen discovers Bakken Crude Oil release in his wheat field during harvest and contacts Tesoro, who shut pipeline down soon thereafter • October 1, 2013 - Tesoro Contingency Planning Manager and Response Team plus Environmental Consultant on-site • October 2013/March 2014 - Emergency Response/Pipeline Relocation • March 2014 to Present – Investigation and Cleanup (Excavation and Thermal Desorption) Looking Southwest Looking East Looking Northwest Soil Treatment After Excavation – Thermal Desorption Unit (TDU) Numerous Constraints • Very significant release, high profile • Numerous stakeholders – property owners, local community, state regulators and government • Return land to farming use - requirement of owner • Limited infrastructure available – hinders cleanup choices • Short timeframe – state regulators demanded remediation plan be submitted quickly • Evolving remediation approach – adjustments to match site conditions - Building remedy before completion of investigation Additional Considerations • High amount of national attention: - Hinged off of interest about North Dakota/Bakken crude - Greenpeace was monitoring, multiple stories in the NY Times • Local values: - Farming/agricultural area - Very high value put on land ownership - Limited options for remediation (purchase of the site by Tesoro was “off the table”) - Return to agricultural use is key Photo Credit: NY Times, November 2014 Stakeholders and Resources • Landowners - Steve and Patty Jensen - Final authority on cleanup plan - Site located on 31 acres of 160 acre parcel of larger property • North Dakota Department of Health (NDDH) - Responsible for regulatory cleanup goal decision - Remediation technical review • Neighbors/Public - Very involved community - Generally accepting of oil companies - Transparent nature of North Dakota Dept of Health information (website) • North Dakota State University - Agricultural/soil experts - Helped Tesoro understand local values Long-Term Response – DEVELOPMENT OF PLAN • Collaborated with Landowner: - Explored and aligned expectations, concerns & communication needs Incorporated site specific Issues: land use, limitations with planting and harvesting Utilized their local knowledge of available resources (e.g. trucking and materials) Onsite presence was/is key • Collaborated with NDDH: - Identified applicable cleanup standards and permitting requirements for air, water, NPDES, SPCC, SWPPP - Identified other stakeholders/resources – NDSU Dept. of Soil Science - Helped Tesoro appreciate stakeholder interdependencies (Landowner/NDDH/NDSU) - Identified information needed to build project consensus, including larger public • Technical Team: - Engaged a high performing team of technical experts - Included agricultural soil scientists, site characterization experts, remediation engineers, world-class cleanup contractors, Lean practitioners Long Term Response - IMPLEMENTATION • Stakeholder: - Involved NDDH and Stakeholders in resolution - Engaged Stakeholders as part of the team, not as adversaries - Constantly applied ‘Check and Adjust’ mentality • Landowner: - Communicated schedule, approach, technical nuances “In English” to them - Respected and embraced their different paradigms and values - Welcomed their ongoing input and ideas • NDDH: - Presented them with routine progress updates, built upon a familiar template - Built the foundation for open, honest and frequent communication with these important regulators • NDSU: • Provided guidance and research on crude-impacted agricultural soil Long-term Response - REPORTING • Understand differences in audiences • Internal Tesoro • External: landowners, NDDH, NDSU, public • Standard, consistent, transparent, visual, intelligible content in presentations and reports • Maintain stakeholder engagement to ensure path is agreed upon Current Stakeholder Relationship • Landowners and Tesoro have continued to work together (the pie is very important!) • NDDH and Tesoro work together to solve problems - Approaches developed at Tioga site being used at other cleanups - NDDH considers how cleanups are handled when assessing potential enforcement - Positive stakeholder relations can result in a significant reduction in potential fines • NDSU is an integral Project Team Member - NDSU is key to returning site to agricultural use - On-site field research will not only help the landowners, but also the State, Tesoro & other companies in the future • Soil Remediation Contractor (Nelson Environmental) is involved in project optimization and troubleshooting Key Takeaways • Use your resources – field personnel are key to maintaining positive landowner and stakeholder relationships • They are your main eyes and ears • Integral for Landowner satisfaction • Understand and integrate local values into all work – understand that the values of others may differ significantly from your own, or from other projects • Communicate early and often to all Stakeholders • You meet someone every day that knows more about a topic than you do, so why not try to learn every day (PDCA) • Good decisions require good data, constant collaboration and strong trust. Don’t short change the process by “saving money” up front (“go slow to go fast”). Questions?